Chinese mfr. eyes U.S. sales, stores
By Powell Slaughter -- Furniture Today, April 24, 2005
High Point — Simplified, a Hong Kong-based line of ultramodern, Italian-style contemporary case goods, occasional and upholstery, came to market here for the first time with an ambitious two-pronged approach.
On one hand, Simplified looks to build distribution among independent furniture retailers. No surprise there.
But the other half of the company's strategy is to develop a U.S. network of licensed stores with the name Simplified — Contemporary Furnishings.
Simplified already has partnered with logistics company International Distribution Services to provide warehousing and shipping support. IDS has dedicated 100,000 square feet of warehouse space in Norfolk, Va., to support Simplified's U.S. start-up.
"Forty U.S. stores is the initial goal," said Daniel Ng, general manager of overseas operations for HK Royal Furniture Holding Ltd. of Hong Kong, which owns a Chinese manufacturing plant. Royal is a furniture subsidiary of Chitaly Holdings Ltd., a diversified investment company traded publicly on the Hong Kong Stock Exchange.
The U.S. company-owned stores would anchor a network of licensed stores, which would average around 5,000 square feet. Simplified also hopes to sell via retail galleries.
"We're looking for (stores) to dedicate 500 to 1,000 square feet to make a strong presentation of the line," said Phil Ison, president of International Distribution Services. He said 40 to 50 locations already have been identified for the first stores.
Ng said Simplified — Contemporary Furnishings seeks to fill a void in midpriced contemporary furnishings with Italian looks. The product is made in Guangzhou, China, with beds, for example, retailing from $1,000.
In areas not targeted for Simplified stores, the company is working to build a network of sales representatives to develop distribution among independent retailers.
"We aren't looking for huge volume, but good solid partners," Ng said. U.S. warehousing will allow less-than-container order amounts.
Simplified's parent company, Royal, has proven itself in international retailing. The company has 750 dedicated stores across Asia, as well as in Portugal, Spain, Iran, Dubai and Australia. Thirty of the stores are company-owned and the rest are licensed.
Ng said Royal/Simplified offers a powerful global formula for growth.
"We have Hong Kong financing through a publicly held company, Chinese manufacturing power, German manufacturing technology, European designers, and a U.S. marketing strategy," he said.
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China manufacturer targets U.S.
Apr 15, 2005 -
China mfr. targets U.S.
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